What is the correct method to restore an encrypted Azure VM?

To restore an encrypted Azure VM, leveraging the Cross Region Restore recovery option is often the most appropriate method. This approach allows for the recovery of virtual machines from backups that are stored in different geographical regions. It's particularly beneficial in scenarios where a regional outage occurs or if you want to maintain business continuity by restoring data in a separate region.

In the context of encrypted Azure VMs, the Cross Region Restore is suitable as it facilitates the restoration of not only the VM’s state but also the associated encryption information, ensuring that the VM remains encrypted post-recovery. This option utilizes Azure's built-in capabilities for disaster recovery and geographic redundancy, allowing administrators to maintain data integrity and security practices even when restoring services across different regions.

Using other methods like Cross Subscription, Cross Zonal, or local backups may not address the complexities associated with encrypted VMs or provide the necessary cross-regional capabilities that are crucial for effective disaster recovery and data management. Each of these alternative options presents limitations in flexibility and reach, particularly when dealing with encryption and secure recovery processes.